IPOs Hitting Market
Initial Public Offerings (IPOs) worth Rs 3,160 crore will be launched by companies next week. They are hoping to benefit from an equity market awash with liquidity and a sharp increase in new retail investors.
The government-imposed lockdown to combat COVID-19 led to the stock seeing their lows in March. But now, they have rebounded more than 50%. A long spell of dry primary markets has been ended with this rally.
Senior Vice-President and Head of Capital Market strategy and investments at Sharekhan by BNP Paribas Gaurav Dua said, “There is a flush of IPOs from mid-sized firms to take advantage of the buoyant market conditions and a significant rise in retail participation. More importantly, there is a willingness to pay premium valuation to firms with differentiated business models and a reputed management team,"
CAMS IPO will be opening at a price range of Rs. 1,229-1,230 per share on 21-23 September. NSE Investments Ltd, an existing shareholder is planning to sell its entire stake through the offering. This would fetch it almost Rs. 2,242 crore.
Chemcon will also open for subscription during the same period. It will open for price band of Rs. 338-340 per share. This would raise them almost Rs 318 crore.
Angel Broking would open for 22-24 September at a price band of Rs 305-306 per share. This is expected to raise them around Rs 600 crore.
The stock market listings saw huge listing gains in the last few months. This has lured investors and resulted in IPOs seeing heavy subscriptions.
Shares of Happiest Minds Technologies Ltd have more than doubled on their debut. On the first day itself, the stocks reached 138% over its issue price. It saw subscriptions of 151 times. On Monday, the Rs 600 crore issue of Route Mobile will list.